Pensioners face a bleak winter, price hikes concern, ‘heat or eat’

By Cynthia Taylor

The poorest pensioners in the country will have to choose between ‘heating or eating’, it is expected that many will cut back on food to pay for exorbitant price hikes.

The institute of Fiscal Studies conducted a report on pensioner spending during the winter months. The report has found that the poorest pensioners will cut their food spending by 7% during cold snaps, and their heating spending will be increased by the same amount.

The report came out one day after Scottish Power announced their intention to increase fuel prices. The utility company announced that they will raise gas prices by 19% and increase electricity by 10% from the 1st August, this will affect 2,4 British households.

In a separate IFS report, which was published simultaneously, it was reported that older people spend 41% on average of winter payments on heating.

The report concluded that if a pensioner’s household income was increased by £100, then they will increase their spending on fuel by £3, however, if the increase is labeled payment for winter fuel, then £41 will be spent on fuel.

What is winter fuel payment?

This is payment between £100 up to £300 which is aimed to help pay energy bills

This is payment is available for people who were born before 5th January 1951

This is different to the cold weather payment. Cold weather payment is paid to some people who are on benefits during sustained freezing conditions.

The annual winter fuel payment for most people born before 5th January 1951 entitles them to £100 up to £300 to help pay for increased heating bills during winter, however the recipients are not obliged to spend it only on heating bills.

Senior research economist of the IFS, Laura Blow, stated that this winter fuel payment had been introduced to encourage older people to spend more on heating in the winter months.

She continues to note that if the payment is labeled as a winter fuel payment, then it is noticed that people will spend more of it on fuel, than if the payment did not have a label of ‘fuel payment’ attached to it.

In recent years the UK has experienced several spells of cold weather.

A spokesperson from the Department for Works and Pensions stated that they were committed to doing all they can to ensure that older people who are vulnerable will be able to keep their homes warm in the winter.